Investing Bias: Why You Care About Apple, Facebook, But Not The Hottest Group Today; S&P 500 Futures | Stock News & Stock Market Analysis

Mention an analyst upgrade to Netflix (NFLX) or explain why Apple (AAPL) isn’t finished, and a story is likely to get a lot of views. But point out that Lennar (LEN) and other homebuilders are breaking out of bullish bases, and there are more crickets than clicks.

XAutoplay: On | OffFutures for the S&P 500 index, Nasdaq 100 and Dow futures were little changed vs. fair value Wednesday evening.

Apple and the FANG stocks —  Facebook (FB), Amazon (AMZN), Netflix, and Google parent Alphabet (GOOGL) — deserve attention. They’ve essentially defined and dominated brand-new industries. Their growth has been huge and their stocks are all-time winners.

Because of their hefty valuations, their moves have a big impact on the broader market, especially when you factor in suppliers, customers and rivals.

But as an investor, you can’t afford to focus only on big-name techs. You need to set aside your preconceptions and assumptions to determine which stocks, out of thousands of tickers available, offer the best opportunities right now.

As Apple tries to regroup and Facebook, Amazon, Netflix and Google consolidate, a wave of homebuilder stocks has splashed into the buy zone.

Lennar cleared a 55.85 entry area on Wednesday after surging 4.8% on Tuesday on better-than-expected earnings. Tri Pointe Group (TPH) also flirted with a 14.31 buy point for a second straight day.

KB Home (KBH) and Meritage (MTH) topped buy points on Monday, with KB Home reporting strong earnings Sept. 29 and Meritage extending its breakout after reporting strong Q3 home closings and orders data on Tuesday.

D.R. Horton (DHI), LGI Homes (LGIH) and Toll Bros. (TOL) all cleared entries last week.

It’s not just recent positive chart action. D.R. Horton and LGI Homes have best-possible 99 Composite Ratings, which mean they outperform 99% of all stocks based on a variety of fundamental and technical factors. KB Home has a CR of 98, Toll Bros. is a 97 and Lennar a solid 90.

Those compare favorably with Apple (CR 71) and the FANGs — Facebook (98), Amazon (52), Netflix (87) and Google (95).

It’s not just homebuilders. In recent weeks, a number of auto and truck parts makers and machinery stocks have popped out of sound consolidations.

Don’t focus on having a portfolio of trendy stocks. Remain objective, follow the market, and you’re more apt to generate big portfolio returns.


The Big Picture: The Smart Money Is Bullish

Lennar Nears Buy Point On Earnings Surprise As Builders Break Out

Netflix Stock Gets Boost From Bullish Report By UBS

FANG Stocks News & Quotes

Homebuilder Stocks To Watch And Housing Market News

Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks

Looking For The Best Stocks To Buy And Watch? Start Here

Source link

Originally posted 2019-09-19 23:21:06.


No comments.

Leave a Reply

error: Content is protected !!